Morning Report

The full correctional level -100% Fibonacci- of CD leg for the bullish harmonic AB=CD pattern has resisted as well yesterday, pushing the pair downwards once more where it becomes very close to 88.6%. We still need to witness a sustained breakout below 1.6420 to make sure that the pair will not achieve more extended technical targets for the harmonic structure. Anyhow, we hold onto our bearish anticipations over intraday basis, based on the huge negative divergence appearing on RSI 14 and the potential reversal classical formation Megaphone discussed several times before.

The trading range for today is among key support at 1.6225 and key resistance at 1.6715.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair below 1.6420 targeting 1.6135 and stop loss above 1.6615 might be appropriate.